US-based contract research organisation Medpace has been acquired by a European private equity firm for $915m.
Clinven took a majority investment in the CRO after judging contract research to be an attractive investment market, anticipating strong growth thanks to the increasing number, and complexity, of clinical trials required to bring new molecules to market.
Supraj Rajagopalan, partner at Cinven, said: “Cinven’s healthcare team identified the CRO industry as an attractive market in which to invest given its fundamental growth characteristics.
“The CRO industry consolidation has created a gap in the market serving the mid-cap pharma and smaller biotech players – where Medpace operates and where we intend to capitalise on organic growth opportunities.”
From its Ohio headquarters Medpace covers the pharma, biotech and medical device sectors and has been rapidly expanding its presence in Europe.
In recent years the company has opened new offices in France, Italy and Scotland, acquired The Netherlands-based medical device CRO MediTech Strategic Consultants and strengthened its senior European team.
Medpace will continue to be led by founder, president and CEO Dr. August Troendle and he, and the Medpace management team, will remain significant minority investors alongside Clinven.
Before setting up Medpace Troendle worked at Novartis’ Sandoz unit in clinical development and for US regulator the Food and Drug Administration.
Commenting on his company’s acquisition he said Medpace’s European growth and ambitions further afield made it a good fit with Clinven’s presence in the region and ability to support Asian expansion plans.
“Medpace is committed to advancing the most streamlined and cost-effective path to drug approval and ultimately helping our sponsors improve people’s lives,” he added.
“We are confident that Cinven’s investment will enable us to continue leveraging our team’s significant expertise in delivering insight, and efficiencies to every phase of a trial.”
Established in 1992 Medpace operates across more than 45 countries and has over 1,500 employees.